To run a legal entity in India there are various forms of structure which a person can choose to establish an entity and run its business activities. It is the right choice of the form of business entity which lead to smooth functioning of a business. So to make the right choice of your form of business here is the easy go Checkpoints which will enable you to choose your business structure.

A Private Limited Company is a private structure of business where public at large is not involved. The business decisions are in the hand of the promoters who can also be the Directors and Shareholders of the company. When the business decisions are to be kept in the control of the promoters than this form of entity serves the best picture.

Pre-requisites for Incorporating a Private Company

The name with which the promoters are desirous of running their business form should be unique and should not resemble with any ongoing business form as per Incorporation Rules and Companies Act, 2013.

A person above the age of 18 is capable to incorporate a private limited company and be the Directors and Subscriber of the company.

The individuals who have to make decisions concerning the daily business transactions are to be appointed in the Board. This form of structure needs to have minimum 02 Directors out of which 01 shall be Resident and a maximum of 15 Directors.

The individual/ body corporate who bring funds in the business are the one who are categorized as the members of the company. This form of structure needs to have minimum 02 members and a maximum of 200 members.

The funds to be infused in the company for running the business chores of the company is in the form of Capital. There is no minimum and maximum amount stated for the infusion of funds in the company in Companies Act, 2013.

The place through which the activities of the business are to be carried on in legal terms is said to be the registered office of the company. The registered office should be capable of receiving and acknowledging all communications and notices as may be addressed to it.

Contact details in the form of Mail Id and phone no are to be registered at the time of incorporation of a company.

Process of Incorporation

• Availing the name of the Company
• Availing DSC of the members of the company
• Documentation and procedural work
• Filing of Incorporation form with Ministry of Corporate Affairs
• Getting Certificate of Incorporation with PAN, TAN, ESIC, PF and DIN.

Benefits of Incorporating a Private Limited Company

• A registered company increases the authenticity of your business, it provides a shield to your business personal liability and protects from other risks and losses.
• As all the shares of Private Company is concentrated in the hands of a few individuals, it mitigates the risk of intrusion of an unknown
• A Private limited company is an independently taxed and accountable business entity, where each shareholder has liability limited to his or her shareholding
• A Private limited company is an independently taxed and accountable business entity, where each shareholder has liability limited to his or her shareholding
• Tax benefits in the form of availing deductions which a private limited company can claim.